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US stock future indexes are fractionally lower (SPY -0.2%), government bond prices higher and the US dollar sharply higher as U.S. equity futures ease from record levels. WTI crude still in the high 45's, Housing Starts came in at an annual rate that topped estimates and Building permits, which are a sign of future activity, also came in higher.

What Is Moving the Markets

LONDON (Reuters) - World shares dipped for only the second time in nine days on Tuesday, sapped by a drop in oil prices and data that showed Britain's vote to quit the European Union dented German business confidence.

(Reuters) - UnitedHealth Group Inc , the largest U.S. health insurer, reported a better-than-expected quarterly profit due to strength in its pharmacy benefit management business, and technology and consulting divisions.

LONDON (Reuters) - Henderson Global Investors, a minority investor in Bayer has demanded a vote on the firm's $64 billion-plus proposed takeover of Monsanto, which it said threatened the long-term strength of the German chemicals group.

TOKYO (Reuters) - Shares of Japan's Nintendo Co soared another 14 percent on Tuesday, more than doubling the firm's market capitalization to 4.5 trillion yen ($42.5 billion) in just seven sessions since the mobile game Pokemon GO was launched in the United States.

Today I have for you a recorded conversation with Harris Kupperman (Kuppy), a friend of mine who manages Praetorian Capital, a Florida-based hedge fund. Kuppy is one of a clutch of guys who I call on to stress test my views and vice versa. Sometimes we disagree, though more often than not we don't.

Either way, Kuppy's views are always, always valuable to me.

In this conversation we discuss, among other things:

What Kuppy bought the weekend after Brexit.

A trade you can still put on to profit from the Brexit fallout.

Kuppy's current views on emerging markets.

What asset Kuppy thinks is "gold on acid".

How he's positioned and has been playing repeated crisis events.

(click on the image to listen to the podcast)

In addition to the above, I've got some thoughts on the failed coup in T ...

Another one of the Hedge Fund high rollers, Marc Lasry of Avenue Capital, recently confessed on bubblevision that 2200 on the S&P 500 doesn't make sense to him, either.

But his reasoning went right to the crux of the bubble implosion lurking just ahead. According to Lasry, the market may be discounting a "stronger-than-expected" economic rebound and thus only appears to be ahead of itself:

The U.S. stock market, making a string of recent record highs, "doesn't make much sense," distressed debt specialist Marc Lasry told CNBC Monday, sharing the view of fellow billionaire investment titan Larry Fink.

"Everyone is a bit surprised," said Lasry, co-founder of Avenue Capital, which has $11.3 billion of assets under management. "But the market is telling us what's going to happen next year [or] the next two years."

While questioning the advance in stocks, Lasry said on "Squawk Box" the market may be signaling a stronger-than-expected U.S. economy, with a growth rate somewhere in the 2 to 3 percent range...."

Ah, the hoary myth of a market that processes information, discovers price and discounts the future. Apparently, no one told Lasry what the bereavers for free markets and honest money had long ago confessed. To wit, ...

After last quarter's brutal results, which saw the worst revenue for Goldman Sachs since Q4 2011, the question about Goldman's Q2 earnings report was not if it would beat but by how much. Moments ago we got the answer when the company reported Q2 EPS of $3.72, handily beating consensus estimates of $2.68, but down 21% from last year's $4.75 (ex-charges) EPS. The reason for the rebound was stronger top-line growth which at $7.93 billion, was the best print in one year, if still down 12.5% from a year ago.

The top-line rebound was not uniform however, with revenues from Equities declining once again, down to $1.754 billion from last quarter's 1.789 billion, while Investment management was roughly flat, at $1.353 billion. The upside surprise came from investment banking which rose from $1.46 billion to $1.79 billion, as well as FICC, which at $1.93 billion was above the consensus estimate of $1.8 billion, and higher than both Q1 2016 ($1.66BN) and the year-prior print of $1.6 billion. The final wildcard, Goldman's prop trading group, Investing and Lending, surged to $1.1 billion from just $87 million last quarter if down substantially from the $1.8 billion a year ago.

But while the revenue side was stronger than expected, if still double-digits lower than a year ago, what was perhaps more interesting was the slashing of overhead. According to Goldman, in Q2 it had only 34,800 full time employees, a whopping - for the bank - cut of 1,700 from 36,500 a quarter ago, the biggest monthly drop in employment since the crisis.

Finally, confirming Goldman's dedication to cost-cutting was the flattish compensation expense, which at $3.3 billion in the quarter, meant that Goldman's ...

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